Dictionary of Finance and Investment Terms: gilts
gilts
bonds issued by the British government. Gilts are the equivalent of Treasury securities in the United States in that they are perceived to have no risk of default. Income earned from investing in gilts is therefore guaranteed. Gilt yields act as the benchmark against which all other British bond yields are measured. Gilt futures are traded on the London International Financial Futures And Options Exchange (LIFFE).The name gilt is derived from the original British government certificates, which had gilded edges.
